The Annual Report is a good read. I am always v interested in...

The Annual Report is a good read.

I am always v interested in any businesses' capex - both the growth part and the stay-in-business replacing worn plant. In these bizarre economic times with few businesses investing for growth, I watch out like a hawk for those who do have useful opportunities to build.

There is $12.2m spent on the new Lara feedmill and $8.5m on Laverton rendering (3 new boilers and process improvement, with more to come). Tick. (Note 12 shows total additions to plant and equipment of $33.9m, so I classify the rest as S-I-B)

For some time, management has been alluding to other feedmill opportunities around the country - provided they can make the numbers stack up. These remain live, while management caution patience on when and where. Tick.

The new Novacq aquafeed business shows great promise. Management is carefully avoiding overstating the potential, but we can see their excitement. Tick.

The low level of debt means RIC is not capital constrained, should it see opportunities in organic expansion or M&A.

The big bad debt of $17.9m is nasty (Note 29) but there it is. Only time will reveal final loss on this.

The Moolap property realisation is delayed by state government having a different vision for this landmark and very valuable site. As land prices keep zooming up, the delay is probably more beneficial than not.

All in all, RIC is well placed to flourish. Proceed!

Ash